Terra Considering Options with Lycos
Terra Networks, which bought Lycos in 2000, confirms that it is looking at alternatives for the U.S. Internet group, which reportedly include a possible sale.Terra Networks SA confirmed Thursday that it is weighing options for its U.S. Lycos Internet unit, but it stopped short of saying whether a sale of the division is imminent. Media reports this week indicated that the company is considering selling the Lycos division. Citing sources familiar with the talks, the Financial Times on Thursday reported that Terra Networks is seeking the advice of investment bank Lehman Brothers and that it has received offers of about $200 million. "Terra Networks is currently involved in a reviewing and analyzing process on some of its operating units," the Barcelona, Spain-based Terra Networks said in a filing with the U.S. Securities and Exchange Commission. "As part of this global process, different alternatives are being analyzed for Lycos U.S. No definitive decision has been adopted so far."
In 2000, Terra Networks bought U.S. portal company Lycos Inc. for $12.5 billion, calling the combined company Terra Lycos. Lycos U.S. operations are based in Waltham, Mass., and include such sites as Wired News, Tripod.com, HotBot.com and Angelfire.com.